Newcastle coal futures rose to $145 per ton to kick off the second half of 2023, the highest level since late-May, mainly due to a rise in demand from top consumer China. The country imported 182 million tons of the fuel in the first five months of the year, almost 90% more than the same period in 2022, as the authorities attempt to minimize power shortages. China is facing severe heat waves while continuing drought in some regions led to reductions in hydropower generation. On the other hand, industrial activity remains subdued, stockpiles at ports are growing and coal-fired power plants have accumulated record-high inventories, partially easing pressure from electricity generators. Still, coal prices remain well below a peak of $445 per ton in September last year, and are set to fall to $120 a ton by 2025, according to the Resources and Energy Quarterly report from the Australian government.
